Adding Value to Employee Benefits

August 6, 2014

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Employees who take advantage of the benefits package that their employees offer tend to be more devoted to their employers, display more job satisfaction, and are more conscientious about their work. The cost of health insurance may have increased for many workers due to the recent enactment of changes in health care through the Obama administration. Therefore, many employers are offering supplemental benefits to help offset the costs of out-of-pocket expenses for the employees.

One of the most popular supplemental benefit is the Accidental Death Indemnity policy or the Accidental Death and Dismemberment Benefit Rider. This benefit offers an additional amount equal to the face amount of the policy or the life insurance policy, if purchased as a rider. If death to the named insured ensues resulting from an accident on a common carrier, such as a train, bus, or airplane, the beneficiary on the policy would receive an additional amount as specified in the policy.

To derive the maximum benefit from the policy, anyone who travels quite frequently during the year on trips, whose work includes driving frequently to appointments, or who operates machinery or other vehicles during the course of their employment, should seriously consider purchasing this policy or adding a rider to their life insurance policy.

Another factor to consider in adding the rider or purchasing an accidental death indemnity policy, is the increase in accidents due to cell phone use. People who use cell phones while driving are four times more likely to have an accident. Teens and sales professionals have been using cell phones while driving in recent years, causing many fatal accidents. Because of the catastrophic losses sustained in legal battles with the victim’s families, some major corporations have undertaken a policy to prohibit their sales professionals from using cell phones while driving. Teens have been responsible for approximately twelve percent of all automobile accidents.

An employee could purchase the policy on himself/herself and add riders to cover a spouse and children. The additional amount of protection would be advantageous to the beneficiaries at the time of loss. As with all other life insurance policies, there are exclusions under the policy which would place limitations on whether the beneficiary could collect a benefit in certain types of accidents.

In conclusion, anyone who earns a living while driving a vehicle or who frequently travels by common carrier should consider purchasing an accidental death and dismemberment policy or adding the rider to their supplemental benefits policy or personal life insurance policy.

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